Partnership Law - Lawyer in Chennai & Bangalore
Partnership Law
We advise and assist our private clients in matters relating to the Indian Partnership Act, 1932. It is easy to form a partnership and carry on business under a partnership firm and hence partnerships are the most common form of business relationship in India amongst small business. However, the absence of limited liability is a deterrent to the formation of partnerships under this Act. Also, a partnership firm formed under this Act does not have a legal existence of its own and is always identified with all of the partners of the firm.
A partnership formed under the Limited Liability Partnership Act, 2008 however, gives the advantage of a limited liability, though, the formation of which takes a longer time. For persons who wish to form a partnership which seeks to scale up its business, the formation of a limited liability partnership (LLP) is worth considering.
The salient features of an LLP are:
- An LLP is a body corporate, a legal entity separate from its partners, with the liability of partners limited to their contributions.
- The LLP is a distinct legal entity separate from its partners, meaning it can sue and be sued in its own name.
- Partners are generally liable for the obligations of the LLP only to the extent of their contributions, protecting their personal assets.
- At least two partners are required to form an LLP. Maximum number of partners is unlimited.
- There must be a minimum of two designated partners, with at least one being a resident of India.
- LLPs offer flexibility in structuring and operating, making them suitable for professional businesses and venture capital investments.
A well drafted partnership agreement is required to capture the real intent of the partners to avoid future disputes. We also assist in the registration of the partnership firm with the authorities as the partnership law places unregistered partnership firms at a disadvantage in seeking certain reliefs.
Due Diligence covers the following areas:
Services on partnership law include:
- Drafting of Partnership Agreements
- Registration of Partnership Firms
- Reconstitution of Partnership Firm
- Drafting of Limited Liability Partnership Agreement
- Registration of Limited Liability Partnership (LLP)
- Reconstitution of Limited Liability Partnership (LLP)
- Representing the partnership firm/LLP before courts/tribunals
- Inter-se disputes between partners
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